Dash

What is Dash?

Dash is released 18 January 2014. Dash is used as a digital currency, just like Bitcoin. It’s privacy-centric with instant transactions. Dash is based on the Bitcoin software but has some improvements. While making transactions using Dash, you will remain anonymous.

Unlike Bitcoin, transactions are not published on the public blockchain. That means it’s impossible to trace transactions. Dash uses master nodes in its decentralized network. There are no third parties involved. These master nodes almost instantly confirm Dash transactions.

Dash uses a two-tier network. The first tier consists of miners who secure the network and write transactions to the blockchain. The second tier consists of master nodes that enable more advanced features in the Dash network. These advanced features are Private Send, Instant Send and governance functions.

Mining algorithm

Dash uses the X11 POW mining algorithm. X11 uses eleven hashing functions making it very secure. X11 is also very efficient meaning that you can mine it with a CPU or GPU. Another big plus is that X11 is ASIC resistant. Meaning that big Bitcoin mining companies cannot use their ASIC miners to mine Dash or any other coin using X11.

Mining Dash works in a different way you might be familiar with. Master nodes are a big part of the Dash network. Everybody can run a master node. But there is a “small” catch. You need 1000 Dash to run a master node. You cannot move, spend or trade these 1000 dashes or you will lose your voting right. Losing your voting right means you’re not a master node anymore. With the current price (this time of writing) of $358, you need $385,000 to become a master node.

You can image master nodes were much easier to own when the price of Dash was just a few dollars. But why would you run a master node in the first place? Because you get paid.

When miners find new Dash blocks, the reward will split into three parts:

45% goes to the miner who found the block

45% goes to the master nodes

10% goes to the Dash development team

If you run a masternode, you will earn some Dash when new Dash blocks are found. At this time of writing, there are only ~7.5 million Dash coins in circulation. Since the total supply is 18.9 million Dash, there are still more than 11 million dash to be mined.

What can you do with Dash?

You can use Dash to make fast anonymous transactions. You can also use Dash for day trading or holding it for future use.